TMG - Talaat Moustafa Group

Transcription

Company
Logo
Talaat Mostafa Group Holding Company
Group Presentation
J
June
2009
Safe Harbour Statement
Company
Logo
Certain information disclosed in this presentation consists of forward looking statements reflecting the current view of the
company with respect to future events,
events and are subject to certain risks,
risks uncertainties and assumptions.
assumptions Many factors could
cause the actual results, performance or achievements of the company to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward looking statements, including worldwide
account of trends, economic and political climate of Egypt, the Middle East, and changes in business strategy and various
other factors. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove
i
incorrect,
t actual
t l results
lt may vary materially
t i ll from
f
th
those
d
described
ib d in
i such
h forward
f
d looking
l ki statements.
t t
t
2
Outline
¾
¾
¾
¾
TMG
GC
Corporate P
Profile
fil
Company
Logo
¾
TMG at a Glance
¾
Projects Development, Achievements and Growth Prospects
¾
Share Data
¾
Board of Directors and Corporate Governance, Executive Team and Business Partners
¾
Strategy and Business Model, Quality Control and Operating Systems
Market and Operational Review
¾
Macroeconomic Indicators,
Indicators Real Estate Drivers,
Drivers Tourism Drivers
¾
Financial and Operational Review, Hotels & Resorts Operational Review
Future Growth
¾
Real Estate Development Plans And Projects Progress
¾
Real Estate Future Growth
¾
Hotels & Resorts Future Growth
Investment and Risk Considerations
¾
TMG
GC
Corporate P
Profile
fil
¾
TMG at a Glance
¾
Projects Development
¾
Achievements and Growth Prospects
¾
Share Data
¾
Board of Directors and Corporate Governance
¾
¾
¾
Executive Team and Business Partners
Strategy and business model
Quality Control and Operating Systems
Company
Logo
TMG TMG at a Glance

A successful,
f l 20-year
20
t k record
track
d iin which
hi h 8.5
8 5 mn sqm off
land was developed and over 57 thousand real estate units
with a BUA that exceeded 9 mn sqm were sold

Strong management capabilities with 10 board members,
13 vice presidents
presidents, 3,000
3 000 employees and 60,000
60 000 on
on-sites
sites
workforce

50 mn sqm of quality land bank in prime locations and high
growth areas

Geographic Diversification: Expanding in the region with an
eye on markets of shared similarities with the Egyptian
real estate markets. First market: KSA

Business line Diversification to increase contribution of
stable income: Five additional Hotel & Resort projects
currently under development

Self contained urban communities targeting the middle to
upper middle classes

Different styles and size of units that cater to changes of
income levels, average household size, life style and
consumer preference

Three operational large scale luxury hotel complexes
including
g high-end
g
residencies, shopping
pp g malls and office
parks

A yearly turnover that reached EGP 14 bn per year
representing 17.6 thousand units

A sales backlog
g that exceeds EGP 26 bn or 35 thousand
units

Healthy financial position and minimal gearing: cash EGP
1.8 bn, debt EGP 2 bn, debt to equity ratio of 1:12
Company
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5
TMG
Projects Development
Company
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Construction
Under
6
TMG
A hi
Achievements
t
Growth Prospects
Breakdown of Sold Units
Breakdown of Land Bank
0 8%
0.8%
Company
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1.1% 2.6% 0.2% 0.5%
2.8%
44%
48%
•Development rights of 50 million sqm in Egypt and KSA
•
•
•
•
•
Developed 8.5 million sqm
D
l
d 8 5 illi
of land
fl d
Sold over 57 thousand residential units
Developed over 9 million sqm residential BUA
Sold 28.6% of madinaty residential BUA, 40.2% of Al Rehab II and 59.2% of Al Rabwa II units
Award winning operational hotels
Award winning operational hotels
Master development of 6.2 million sqm
p
q of quality land q
y
for strategic non‐residential developers for value creation and knowhow
• Sales backlog in excess of 26 bn to be delivered and recognized over next four years
g
y
• 1,916 hotel keys and 2,524 attached residential units in various design and development stages, upcoming in next three to four years
•Increase contribution of stable income from operating assets Increase contribution of stable income from operating assets
to reach 35% of total revenue ( a target of 5,000 hotel rooms)
•Maintain minimum of 35 mn sqm of land inventory through 7
on going local and regional expansion
•
TMG
Share Data
2009 Share Performance
Shareholders Structure
Other major
shareholders
TMG RE & Tourism
Investment *
25.75%
49.85%
Other
shareholders
including free
float
24.4%
EGX Rebased
EGX Rebased
RE INDEX Rebased
RE INDEX Rebased
Company
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TMG
8
7.5
7
6.5
6
5.5
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
*Including Talaat Mostafa Family, and Saudi group
Fair Value
Fair value by: HSBC: EGP 12 EFG : EGP 8.7
Morgan Stanley : EGP 9
Prime : EGP 10.27
CI Capital : EGP 12.8
Citigroup: EGP 9.8 (Target Price)
•115% appreciation in share value since start of 2009*
•Outperforming RE index at 89%, and EGX 30 at 51%
*as of Sep 27,2009
8
TMG
Board of Directors and Corporate Governance
Company
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Executive and nonexecutive members with
longstanding experience
in real estate and
construction in the MENA
region
Four independent and non
executive members that
are publicly renowned in
the economic, legal and
commercial circles
Audit, nomination and
remuneration committees
h
have
b
been appointed
i d
The audit committee has
the responsibility to
review and approve
related party transactions
B
Board
d off Directors
Di t
Tarek Talaat Moustafa (Executive Chairman)
Hani Talaat Moustafa
Yehia Mohamed Awad
Omar Mohamed Awad
Adel Fattouh Hammad
Ali Abdallah Ali
Mahmoud Mohamed Mahmoud
Mohamed Hisham Al Sharif
Hany Sarie El Din (Chairman of the nomination and remuneration committee)
Hossam Abdallah Helal (Chairman of the audit committee)
Directors are bound by
non-compete rules in
Egypt.
Shareholder directors
Independent
9
TMG
Executive Management
In addition to the board,
the executive
management of the
company is composed of
13 Vice Presidents.
A number of committees
including the Steering
Committee, Higher
Management Committee
and Executive Committee
support the Management
decision making process.
Over 3000 professionals
are directly
di
l employed
l
d iin
the various sectors and
subsidiary companies of
the Group.
In addition,
addition a workforce
of approximately 60,000
technical staff is
operational in the various
projects’ sites.
Company
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E
Executive
ti Ch
Chairman
i
and
d Vi
Vice P
Presidents
id t
Tarek Talaat Mostafa (Executive Chairman)
Sherif Ghoneim– V.P. Sales and Marketing, Joined: 1993
Zaki El Guiziri – V.P. Hotels & Business Development, Joined: 2004
Jihad M. Sawaftah – V.P. Chief Financial Officer, Joined: 2004
Ali Abdallah – V.P. Banking and Real Estate, Joined: 2000
Gamal El Guindy – V.P. Administration of the Chairman’s Office, Joined: 1983
Ahmed Afifi– V.P. Madinaty Project Management, Joined: 1995
Mohamed Atef
Atef– V.P.
V P Technical Affairs
Affairs, Joined: 2005
Ashraf El Banna – V.P. Operations, Joined: 2005
Nagi El Touny – V.P. Touristic Projects, Joined: 1994
Sabry Kamal – V.P. Quality and Systems, Joined: 1995
Sami Mokhtar – V.P. San Stefano Project, Joined: 1992
Ayman Ali – V.P. Human Resources, Joined: 2005
Mohamed Al Shazly – V.P. Sales, Joined: 2001
10
TMG
Business Partners
The
Th
A
Company
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Four
F
Seasons
S
and
d Kempinski
K
i ki :internationally
i t
ti
ll reputable
t bl management
g
t chains
h i off our h
hotels
t l
Joint Venture with Hill International for projects management
A
joint venture with Al Mehedeb, Al Fawzan and Al Kahtani through Al Oula for Real Estate
S.A.E, Local Saudi Partners for Saudi Developments
Top
class worldwide contractors, master planners, designers of projects components and
execution:
¾
Main contractor for our projects as Joannou and paraskavides, Hundai, Murray and Roberts and Binladen
¾
The master planning of madinaty was made by a group of consulting firms from the United States: Sasaki,
SWA and HHCP and their Egyptian counterparts Cairo Group for planning and architecture
¾
Architects as HKS, USA for sharm extension design WZMH, Canada for luxor design, Studio sergi, Italy for
marsa alam design
¾
MEP companies as MMM Canada for sharm extension
¾
I t i d
Interior
design
i companies
i as GA
GA, UK ffor L
Luxor
¾
Signature golf courses designers as Robert Trent Jones II and HHCP Design International
11
TMG
Strategy and Business Model
Geographical
Geographical diversification
Integrated development
Company
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Integrated process capitalizing on brand name, reputation and experience
t ti
d
i
concept
Stable and recurring
Scale and income from Land bank positioning
Operating assets
Operating assets
fflexible phasing p
g
self financing
construction real estate
model
units sales
financing schemes Low risk,
catering to model: customers' (sell first
(sell first affordability
then construct)
In‐house
Centralized
Centralized Operations
Top Class Designers and Contractors
Reputable Business
Business Partners
Flagship Developments
O
Ongoing after sale integrated facilities i
f
l i
d f ili i
management operations
12
TMG
Quality Control and Advanced Operating Systems
Company
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• 2007: Application of the SAP Enterprise Resources Planning System (ERP) on all functions of the Group
Subsidiaries. The result is a smooth process integration between sales, accounting and treasury, with
facilitated financial and managerial reporting, streamlined accounting bookkeeping and consolidation,
improved administration of internal controls, corporate governance and transparency, and an optimized
cash management process.
process
• Feb 2008: qualified for the ISO 9001:2000 certification requirements for a quality management system
where an organization:
1.
needs to demonstrate its ability to consistently provide product that meets customer and
applicable regulatory requirements, and
2
2.
aims to enhance customer satisfaction through the effective application of the system
system, including
processes for continual improvement of the system and the assurance of conformity to customer
and applicable regulatory requirements.
13
¾
Market
k and
dO
Operational
i
lR
Review
i
¾
Macroeconomic Indicators
¾
Real Estate Market Drivers
¾
Tourism Market Drivers
¾
Financial Review
¾
Consolidated Operational Review
¾
Hotels & Resorts Operational Review
Company
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TMG
Macro Economic Indicators
Company
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Growth in Real GDP
• The Government estimates GDP growth
to be in range of 4.7 percent in the fiscal
year through June
• Construction & building, real estate and
tourism sectors constituted
approximately 10.5% of Q2 08/09 real
GDP
• These sectors are main contributors in
fuelling GDP growth and have a great
socioeconomic effects relating to
employment and dependent industries
• The overnight deposit rate was lowered
to 8.25 percent, while the lending rate
was reduced
d
d tto 9.75
9 75 percentt
Growth in Construction and Building Material
• Annual headline inflation fell in August 09
to 9 percent
• Egypt’s
gyp net FDI reached US$42.4bn from
Jul 04 to Jun 09 of which US$ 8.1 bn in
08/09
• US$32.9 bn net international reserves by
the end of August 09
15
TMG
Real Estate market drivers in Egypt
Company
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Growing population

78mn population with 60% under the age of 30, and 600,000 new marriages per annum

Urban and general population growing by 3.1% and 1.9%, respectively

Growing middle to upper classes has created a growing demand for good quality, affordable housing
Supply / Demand Gap

Total demand of 450k units per year. Approximate demand of 225k units per year in urban areas

Supply/demand gap in urban areas of 5k, 50k and 70k in the High-end, Middle and Low-end residential units,
respectively
Developments that support mortgage finance

favorable financing schemes broadens the pool of potential customers and has proved very successful in the
recent Madinaty pre-sales

SSupportive
ti governmentt iinitiatives
iti ti
h
have lled
d th
the E
Egyptian
ti mortgages
t
market
k t tto reach
h LE 3.5
3 5 bn
b att end
d off M
March
h
2009, up significantly from a very low base of LE 202 mn at the end of September 2005

A vast room for development with low penetration to GDP of 0.4%, and 66% of current mortgages supplied by
banks

Lower interest rates by the CBE and new mortgage companies entering the market are expected to boost up the
real estate market
16
TMG
Tourism market drivers in Egypt
•Key
Figures
Company
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A fast-growing economic sector, with an average annual growth of 25 % in arrivals and 32.5% increase in
receipts over the past four years

13 million people visited Egypt in 2008, and ministry of tourism expects to preserve the current number of
arrivals

Revenue from tourism in 2008 was US$ 11 billion a Y-oY increase of more than 15.2 %, or $3.3 billion as per CBE

T i arrivals
Tourist
i l iin E
Egypt are expected
d to grow at nearly
l 6% over 20082008 2012
Top hard currency earner, key contributor to GDP and employs 13.7% of the Egyptian workforce
Government initiatives to support tourism during financial crisis

intensify promotion and advertising campaigns to preserve Egypt’s share of 4% of international tourists flow

exempt hotels from contributing to the tourism promotion authority

reduce landing, take-off and ground-handling fees for charter flights, waiving them entirely for charter flights
making 11 trips to designated destinations in the span of three months

pay part of the cost of unreserved seats on flights to different airline agencies

No price-reduction strategy since prices in Egypt were already very affordable and any extra reductions would
affect the quality of services offered
17
TMG
Financial Review
Company
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Revenue Contribution 1H 2009
1H 2009 Key figures
Total assets: EGP 53.2
53 2 BN
Cash and cash equivalents: EGP 1.8 BN, 3.4% of assets
Total debt: EGP 2 BN, 3.7% of assets
Debt to Equity Ratio: 1: 12
Other Revenue
1%
Residential
90% Hotels
9%
Assets Growth
Sales, COGS and GP %
56,000 2,500 54 000
54,000 2,000 52,000 28%
50,000 38%
39%
33%
30%
24%
1,500 48,000 1,000 46,000 500 44,000 42,000 ‐
1Q2008
40,000 1Q2008
4Q2008
2Q2009
2Q2008
3Q2008
Consolidated revenue
4Q2008
1Q2009
Cost of goods sold
2Q2009
18
TMG
p
Review
Consolidated Operational
Company
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Quarterly Review
Quarterly profitability
2Q2009 1Q2009 4Q2008 3Q2008 2Q2008 1Q2008
Revenues breakdown
Revenues from units sold
Revenues from Hotels
f
l
Other revenues
Total consolidated revenue
1478
1,402 222 1,798 1,598 1,411 145
132 134 104 165 180 15
15 26 35 4 9 1,638 1,549 382 1,936 1,767 1,600 COGS breakdown
Real Estate & Construction Cost
Hotels Cost
Services Cost
Total cost of goods sold
((1,158))
((1,008))
((194))
((1,112))
((1,007))
((1,042))
(88)
(67)
(60)
(58)
(94)
(113)
(7)
(5)
(1)
(20)
(1)
(2)
(1,253)
(1,080)
(255)
(1,189)
(1,102)
(1,157)
385 469 127 747 665 443 GP%
24%
30%
33%
39%
38%
28%
SG&A, Other income and expenses
(50)
(47)
(35)
(253)
(47)
56 Net profit before tax
335 422 92 494 618 499 NPBT%
20%
27%
24%
26%
35%
31%
((9))
((80))
16 ((3))
((27))
((29))
Net Profit
327 342 108 491 591 471 NP%
20%
22%
28%
25%
33%
29%
(6)
(28)
(3)
(28)
(141)
(45)
321 314 105 463 450 426 20%
20%
27%
24%
25%
27%
Minority's share
attributable to shareholders
385 314 1Q2009
Gross profit
income tax and deferred tax
321 335 2Q2009
422 469 105 92 127 4Q2008
463 494 3Q2008
747
747 450 2Q2008
426 1Q2008
443
443 ‐
100 200 Net profit
300 400 Net profit before tax
618 665 499 500 600 700 800 Gross profit
19
TMG
H&R Operational Review
Nile Plaza
240
75%
65%
350
300
250
200
375 366 150
258 211 100
50
Total Reve
enue (EGP Mn))
400
64%
200
60%
160
45%
120
194
80
30%
GOP %
G
ARR and Rev Par
Company
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159
15%
40
-
combined ARR
-
1H‐09
1H08
combined Rev Par
30
120
25
20
31
31
10
Total Revenue ((EGP Mn)
To
To
otal Revenue ((EGP Mn)
1H09
Sharm
El Sheikh
140
San
35 Stefano
15
0%
55%
75%
56%
100
45%
80
60
101
40
30%
90
15%
20
5
-
1H08
1H09
60%
GOP %
1H‐08
0%
1H08
1H09
20
¾
Future Growth
G
h
¾
Real Estate Development Plans
¾
Real Estate Projects Progress
¾
Real Estate Future Growth
¾
Hotels and Resorts Future Growth
Company
Logo
TMG
Future Growth
Company
Logo
R l Estate
Real
E t t D
Development
l
t
Hotels and Resorts
• Capitalizing on landbank in existing projects
• Master Development and sale of prime land plots; value created through project development and units delivery over 10 ten yyear period
p
• Looking for worthwhile opportunities to expand landbank in Egypt
• Expanding in the region with an eye on markets of shared similarities with the markets of similarities with the
Egyptian real estate markets
• The target is to have a minimum landbank of 35 million sqm at any point of time
• The target is to build a stock of 5,000 hotel
rooms with a minimum IRR of 18%, and
increase the contribution of stable income to
35% of total revenue
• Development of hotel projects in the pipeline,
early launch of real estate sales to co-finance
development and enhance returns
• Continue to grow through purchase of
minorities when the opportunity arise
• Looking for further local opportunities that
enjoy prime location and have a market gap to
increase weight of stable income from hotels
operations.
22
TMG
Real Estate Development
p
Plan
Company
Logo
2009 Real Estate Market conditions: • Egypt is one of the least affected economies at a GDP growth of 4.5% and construction growth of 16%
• Solid financial sector; No actual problem in the Egyptian real estate market
Solid financial sector; No actual problem in the Egyptian real estate market
• A state of pent up demand, buyers are adopting a temporary wait and see approach that will eventually end
• A stability in raw materials prices
• A state of stagflation resulting from over money supply may follow in 2010
TMG at start of 2009:
• Sales backlog of EGP 29 bn
• Delivery dates of large scale developments starting 2010
D li
d t
fl
l d l
t t ti 2010
TMG’s plan for 2009:
1 H 09: Postpone launch of new sales for many reasons:
1 H 09: Postpone launch of new sales for many reasons:
• Utilize existing resources and contractors capacity to meet delivery schedules • Accelerate construction of projects’ facilities to benefit from prevailing reduced and stable raw materials prices • Create more value to the new sales of developments with completed facilities
• Wait for the psychological impact on potential buyers to fade away as they witness the market’s stability
2H09: launch new products • Introduce products that have the right mix of size and space utilization Introduce products that have the right mix of size and space utilization
• Maintain prices
• Offer affordable financing scheme to attract new buyers
23
TMG
Madinaty: development progress
Key statistics
Location
Madinaty - % of Sold Residential BUA
new Cairo
Total land size (m2)
33,600,000
L d area tto b
Land
be d
dev. ((m2)
2)
33 600 000
33,600,000
BUA to be dev. (m2)
16,652,942
Expected population
Commence date
Revised completion date
% of sold residential BUA:
Company
Logo
Sold BUA 28.6%
600,000
July
y 2006
2020
available
71.4%
28.6%
Project description

Mix-use community designed by three prominent American
companies

Construction is to take p
place over 8 overlapping
pp g p
phases, each 3-4
years long

Intended residential BUA of 13.9 million m2

In addition to business district, a university, 15 schools and 3
shopping
h
i g malls
ll
24
TMG
Madinaty: progress to date
Infra structure work

12.5 mn m3 of Land levelling and roads preparation

200 kms of roads levelling work

100 k m3 of base and sub base layers

63 km of borders works

40 k m3 of asphalt work

428 km length of water, sewage and irrigation water pipes

110 km of electricity cables

35 km
k off telephone
l h
cables
bl
Company
Logo
Residential BUA work

2 mn m3 of digging and filling

600 k tons of cement

250 k tons of steel

1.5 mn m3 of concrete

2 mn meters of walls

1.2 mn meters of ceramics

400 k meters of marble

4 mn meters of paints

20 k pieces of windows and doors
25
TMG
Madinaty Phase I:
delivery of residential units with complete community services in 2010
Company
Logo
Key statistics
Phase I Residential Units to be Delivered
Land area to be dev. (m2)
7,830,011
Residential land area
7,208,040
Facilities land area
621,971
Residential BUA
3,199,981
Expected population
68,620
Commence date
Jan 2007
Delivery date
April 2010- Dec 2011
% of developed land area:
23%
Services: Northern District
Land Use
language school
British school
mosque
medical center
medical center
central park
district park
Area / feddan
6.7 9.0 2.6 15
1.5 5.0 3.0 27.7 Land Use
Area / feddan Area / m2
Zone 1 Apartment
267 1,119,300 Zone 6 Apartment 245 1,029,000 Total Apartment
512 2,148,300 Zone (I)Villa Golf
507 2,128,140 Zone (II)Villa Golf
698 2,931,600 Total Villas
1,205 5,059,740 Total Residential Units
Total Residential Units
1 716
1,716 7 208 040
7,208,040 Services: Southern District
Area /
m2
28,140 37,632 10,858 6 300
6,300 21,000 12,600 116,530 LLand Use
dU
public school
restuarants, foodcourt, retail and hypermarket
police and fire brigade
p
g
bus station
district management
car service
telephone exchange
district park,
Children play area, lakes area
Total BUA / m2 No. of Unit
1,111,754 6,524 1,136,896 10,518 2,248,650 17,042 390,662 1,105 560,669 1,381 951,331 2,486 3 199 981
3,199,981 19 528
19,528 Other Facilities
Area / ffeddan
dd
5.7 Area / m2
2
24,066 9.0 0.7 1.0 0.8 0.4 1.4 5.0 37,800 2,864 ,
4,074 3,209 1,652 5,873 21,000 23.9 100,538 Land Use
phase 1 of sports club
60 retail shops commercial center
zones 1 and 6 community
zones 1 and 6 community centers:
mosque, admin building, commercial shops, nursery
Villas Golf Course
Roads and City Gates
Area / feddan
Area /
m2
90.0
378,000
1.4
5,903
5.0
21,000
26
TMG
Al Rehab Development Progress
Key statistics
Company
Logo
Al Rehab II - % of Sold Residential BUA
Location: New Cairo, an extension to Al Rehab I
9,900,400
Land
d size
i to be
b d
dev. (m2)
4,684,225
BUA to be dev. (m2)
2,595,620
Expected population
Commence date
% of sold residential BUA
200,000
Nov 1996 / Jul 20061
1
1.
Rehab I / Rehab II
[2011] / [2017]1
40.2%
Project description
Al Rehab I:

Only the shopping centre and phase 6 villas (608 villas) are yet to be
completed. Out of which 171 villas have been sold

Rental revenue from two shopping malls (6,274 sqm) the British school as
well as club fees (membership fees) and F&B
Al Rehab II:

Consists of 1,291
1 291 villas (BUA 0.44
0 44 million m2),
m2) 11,949
11 949 apartments (BUA 1.8
18
million m2)
27
TMG
Al Rabwa Development Progress
Key statistics
Company
Logo
Al Rabwa II - % of Sold Units
Location: Sixth of October City
Land size to be dev.
dev (m2)
2,137,828
819 028 (Rabwa II)
819,028
BUA to be dev. (m2)
118,320
Expected population
Commence date
4,965
January 2006 (Rabwa II)
% of sold residential units (Rabwa II):
2012
59.2%
Project description
Al Rabwa I

an exclusive compound targeting the high end

Construction is completed
p
and consists of 649 villas, a
shopping centre, 9 hole golf course and sports pavilion.

The development is fully sold and covers a land area of
1,318,800 m2
Al Rabwa II

Al Rabwa II will follow a similar model consisting of 340 villas
and an interlinking 9 hole golf course
28
TMG
Real Estate Future Growth:
Capitalise on Land with unrecognized value
2010:
Delivery of residential units
completed with facilities and
infra structure in Rehab II and
Madinaty
Company
Logo
2010 – 2020
2010 – 2020
Master development and sale
of sqm 6.2 mn land plots in
prime locations for strategic
non residential use
Estimated land sale of
500ksqm/annum at an
estimated selling price of
EGP 10K/sqm

Master planning and development of high quality land plots all set with the required infrastructure

Land value created as a result of the development progress and delivery of a full
full-fledged
fledged phase of the project

To be sold to strategic partners that would bring a know-how, fill an existing gap in the area; e.g. medical
projects, banking corporations, large exhibits, key service providers, etc.

The plan
Th
l is
i to
t create
t more value
l tto th
the project,
j t enhance
h
th
the operational
ti
l cash
h fl
flow and
d achieve
hi
more ffavourable
bl
project’s returns

To be launched over a 10 years period starting 2010 after delivery of phase I units at an estimated selling price
of EGP 10,000
10 000 per sqm.
sqm
29
TMG
Location of Land with unrecognized value
Al Rehab
Company
Logo
Madinaty
30
TMG
Geographical Diversification: Nassamat Al Riyadh, Kingdom of Saudi
Arabia
Company
Logo
Project description
Location
Development Progress
Riyadh
3,000,000
BUA residential
1,214,075
Potential extension land (m2)
1,000,000

Established Areez, a joint stock company

I j t d SAR 349million
Injected
349 illi capital
it l
Sales launch date
2009

Purchased 4.1 sqm of land
Completion date
2012

Obtained higher authority of Riyadh City
approval of development plan

Issued construction licence

Signed financing agreement with Riyadh bank

assigned on-site workforce

Awaiting completion of paperwork to comply
with new development regulations declared in
March 2009
Key statistics – Apartments
Land size
Units
Apartments average size
302 4k sqm
302.4k
2050
200 sqm
Key statistics – Villas
Land size
Units
Villas average size
1,914.4k sqm
2,265
355 sqm
31
TMG
Hotels and Resorts Future Growth
Business line
l
Diversification
f
to increase the
h contribution
b
off stable
bl
income to total revenue
Company
Logo
Targeted
g
Future Growth
Reach 5,000 hotel rooms with a minimum IRR of 18%, and increase the contribution of stable income to
35% of total revenue
Steps taken to achieve targeted growth
•
•
Acquisition of Marsa Alsadeed land in Sharm El Sheikh, upon which an extension of the existing Four
Seasons resort will be constructed
P h
Purchase
off lland
d iin d
downtown
t
C
Cairo
i tto d
develop
l a hi
high-end
h d office
ffi and
d hotel
h t l complex
l
•
Purchase of Sednawy Villa adjacent to the Nile Hotel to develop an exclusive business club and parking
that will also serve the hotel
•
Obtained a 50 years renewable concession agreement to develop a resort on Sultana Malak Land in a
prime location in the historic city of Luxor
•
signed up management agreements with the Four Seasons renowned chain to operate the hotels in
Luxor, Madinaty, and Sharm Extension and appointed Kempinski to operate the Nile hotel
•
Raised
R
i d ownership
hi stake
t k tto 100% off the
th Four
F
Seasons
S
Sh
Sharm
el-Sheikh
l Sh ikh R
Resortt b
by acquiring
i i th
the 39.3%
39 3%
minority stake held by Kingdom Hotel Investments (KHI)
32
TMG
2013
B ild
Build-up
off 2,600
2 600 hotel
h l rooms
2012
Operational: 684 rooms / keys
2012
Due to open this year: 191 rooms / keys
TMG
Company
Logo
Building
Hotel
Four
Seasons
Madinaty
Four
Seasons
Luxor
Under development: 1,725 rooms / key
2011
Mersa Alam
2009
Nile Hotel
2007
San Stefano
2004
Nile Plaza
2001
Four
Seasons
Sharm
33
296
662
780
971
1971
2158
2401
2600
TMG
U
Upcoming
i hotel
h l projects
j
Company
Logo
Nile Hotel
Rooms/ keys :191

Project in finalization stage
Operator: Kempinski

Purchased Sednawy Villa extension
Land area: 2 k sqm

Appointed kempinski management company
BUA: 19.8 k sqm
Investment cost: USD 100 MN
Four Seasons Sharm Extension
Rooms/ keys :96
Residential properties: 174
Operator: Four Seasons
Land area 960 k sqm
q
BUA: 490 k sqm
Hotel Investment cost: USD 227 MN

Purchased land

Finished design

Issued licenses and permits

Appointed four seasons management company
Marsa Alam
Rooms/ keys :750

Purchased land
phase one : 1000 units

Finished design
Land area 3.2 mn sqm

Obtained TDA approval
pp
BUA: 390 k sqm
Phase I Investment cost: USD 180 MN

34
TMG
U
Upcoming
i hotel
h l projects
j
Company
Logo
Four Seasons Luxor
Rooms/ keys :201

Signed concession agreement

Finished design

Land area 20 k sqm
BUA: 43 k sqm
Four Seasons Madinaty
Rooms/ keys :240

Finished design

Land area 175 k sqm
q
BUA: 49 k sqm
Hotel Investment cost: USD 174 MN
TMG Building Hotel
Rooms/ keys :200

Purchased land
Operator: TBD

Finished design

Land area 2 k sqm
BUA: 16 k sqm
BUA
35
Company
Logo
¾
Investment Considerations
¾
Risks and Mitigants
TMG
Investment Considerations
Company
Logo
Real Market need
Concept and selling features
Investm
ment Conssideration
ns
Experience and Track Record
Integrated low risk, self finance Business Model
Diversified products and markets
Diversified products and markets
Guaranteed revenue and profitability (sales backlog)
Healthy financial Position
High Growth Prospects
37
TMG
Risks and Mitigants
g
Company
Logo
Risks
Mitigants
Entry barriers to prospective new comers:
• Integrated Business Model
• First mover advantage
Competition
from new
entrants
A diversified growth plan with no over-dependence on one
revenue segment.; Revenue growth in one segment is likely
to offset sluggish growth in another
• New
N
products
d t and
d lland
dd
development
l
t id
ideas
•
Failure to
achieve
overall
growth target
Difficulty to
attract
customers to
the new
product idea
Product features that meet customers needs and
affordability
ff d b l
• A carefully planned promotion strategy that aims at
introducing the product idea and publicizing its value to
the target market
•
A safety cushion of a sales backlog that exceed EGP 28 bn
to be recognized over next four years
• Stable income from operating
p
g assets
• Entering new markets with high growth potential
•
Economic
Slowdown
38
Company
Logo
Thank you